Benefits of Being Early in Crypto and Protecting Against Scams

[HarrisBull]

To be early on a crypto project could probably bring you massive gains. Whether it is to enter at a lower price, receive exclusive perks, or ride the initial growth wave of a token, such is the privilege of early adoption. But with this opportunity comes great risk, especially in a place where scams and rug pulls have become an unfortunate reality.

The Upside of Being Early
This is what will help you make big gains: getting in early on a promising project. As projects grow and gain momentum, the ones who get in early usually have lower entry prices and, in this way, maximize their return. Besides, most projects do offer exclusive rewards, bonuses, or access to features that some other investors might not receive.
Being early also gives you the opportunity to help mold the community and have your say in the project direction, which makes you much more than an investor but a valued participant in the project's success.

The Risks Involved
While the potential rewards are high, so too are the risks with being early in a crypto project. Mostly untested, it is not all that hard to bump into scams, rug pulls, or poorly designed contracts. Without proper due diligence, an early investment can quickly turn into a loss.

Tools for Self-Protection
The good thing is that this space in crypto has been developed, and now there are multiple tools to help you mitigate these risks and hence come up with informed decisions.

Research the Project: You must research your project critically. Check the team, their previous work, the roadmap of the project, and community feedback. An open and active team should be a legitimate sign most of the time.
Use Contract Analysis Tools: The best way to protect yourself is to analyze the smart contract of a project. For real-time analysis, you may use tools like GUARIT Scan to check the vulnerabilities, honeypot risks, and legitimacy of the contract on your own. I always do it first before any early investment personally, and with that peace of mind, take a clear picture of what I am getting into.
Check Liquidity and Market Cap: Understand the liquidity and market cap of the token. Make sure the liquidity is locked, and check the trends in its market cap to avoid projects that may be played with.
Monitor Developer Activity: At this point, watch out for developers' activity, especially early on. There is a need to raise a red flag in instances of aggressive movement of funds or any other suspicious activity. There are many tools that give ways to monitor these activities, so you will not be out of the loop.
Community Engagement
Engaging with the community will also prove to be very invaluable in terms of assessment. Join the Telegram groups, Discord channels, or follow up their Reddit threads. Listening to how the community feels and reacts to something can give you additional insight, which often isn't easily seen in the details of the contract.

[SamReomo]

But with this opportunity comes great risk, especially in a place where scams and rug pulls have become an unfortunate reality.

Well, to be honest, these days most of the new projects are created with rug pulling intention and that's why I believe investing in new projects can be the cause of huge losses for the investors.

It's better to be safe and invest in only projects that are already established as good ones rather than risking your money on new projects. I know some of the well-known projects can also fail but their probability of failing is very low as compared to the new ones.

[yhiaali3]

Despite all the good things you mentioned to verify the credibility of the project such as researching the project, using contract analysis tools, checking liquidity and market value, monitoring developer activity, etc., there is still a possibility that the project is fraudulent.

The methods of fraud have developed incredibly in the crypto space, such that it has become very difficult to discover the project before its launch and invest in it, so I think that the majority of investors prefer to invest in projects that have proven their credibility rather than investing in new projects and being exposed to potential risks.

[TomPluz]

While the potential rewards are high, so too are the risks with being early in a crypto project. Mostly untested, it is not all that hard to bump into scams, rug pulls, or poorly designed contracts. Without proper due diligence, an early investment can quickly turn into a loss.

Nobody knows what can happen into the future and that is why supporting a project in its early stage can be risky but if that project will make it to the top then the potential financial windfall can be so great. Just like what happened then to Bitcoin and its early supporters who did not give up on it. Right now, we are seeing an avalanche of new projects most especially memecoins and we can never be sure which of these thousands newcomers will be popular...so these days the risks can even be more pronounced than before. We have to be careful and only "invest" what one can afford to lose...there is always an element of gambling in here and sometimes luck can also be playing its part, aside from doing the usual due diligence.

[hugeblack]

With over 2 million cryptocurrencies, no prior experience, no team to help you plan and promote, no huge budget, starting a new project that doesn’t offer any real addition or change in the market will lead you to lose your money in a new worthless token that will only be listed on scam platforms.

[Kemarit]

But with this opportunity comes great risk, especially in a place where scams and rug pulls have become an unfortunate reality.

Right, there is a huge risk in this market specially in the early days of crypto as there are rug pulls, and scams. But then investing on a token that has no history whatsoever and suddenly it goes crazy as the price went up and it make you profits. However, this is not going to happen very often, and I will say that luck might played a role as well on what coins we are going to invest and how much money we are willing to risk. And there are risk takers here, some again, might hit the jackpot, but I think majority could have suffered a lot of losses already. So we should really be very careful on the projects that we are going to put our hard earn money as this market is like a wild wild west.

[Faisal2202]

The Upside of Being Early
This is what will help you make big gains: getting in early on a promising project. As projects grow and gain momentum, the ones who get in early usually have lower entry prices and, in this way, maximize their return. Besides, most projects do offer exclusive rewards, bonuses, or access to features that some other investors might not receive.
Being early also gives you the opportunity to help mold the community and have your say in the project direction, which makes you much more than an investor but a valued participant in the project's success.

As an early investor I don't see how you can get extra rewards, maybe in the form of airdrops like some airdrops reward their early investors or people spend money to test their features out. Well, TBH I did not see any big or exclusive rewards for early investors of a project, I have joined one private sale turn out to be 8x but did not get any extra rewards.

The Risks Involved
While the potential rewards are high, so too are the risks with being early in a crypto project. Mostly untested, it is not all that hard to bump into scams, rug pulls, or poorly designed contracts. Without proper due diligence, an early investment can quickly turn into a loss.

I joined only one private sale and it turned out to be legit because there was a trusted middleman involved, well, the risk I was taking is, that the project made listing after around 1+ which was a little frustrating not because I was waiting for it, instead I almost forgot I invested in it but whenever I come to know I got impatient and start to think how much I can make haha.

Tools for Self-Protection
The good thing is that this space in crypto has been developed, and now there are multiple tools to help you mitigate these risks and hence come up with informed decisions.

Do You have a list of such tools? If Yes, then please mention some if you don't mind.

[electronicash]

The Upside of Being Early
This is what will help you make big gains: getting in early on a promising project. As projects grow and gain momentum, the ones who get in early usually have lower entry prices and, in this way, maximize their return. Besides, most projects do offer exclusive rewards, bonuses, or access to features that some other investors might not receive.
Being early also gives you the opportunity to help mold the community and have your say in the project direction, which makes you much more than an investor but a valued participant in the project's success.

As an early investor I don't see how you can get extra rewards, maybe in the form of airdrops like some airdrops reward their early investors or people spend money to test their features out. Well, TBH I did not see any big or exclusive rewards for early investors of a project, I have joined one private sale turn out to be 8x but did not get any extra rewards.

The Risks Involved
While the potential rewards are high, so too are the risks with being early in a crypto project. Mostly untested, it is not all that hard to bump into scams, rug pulls, or poorly designed contracts. Without proper due diligence, an early investment can quickly turn into a loss.

I joined only one private sale and it turned out to be legit because there was a trusted middleman involved, well, the risk I was taking is, that the project made listing after around 1+ which was a little frustrating not because I was waiting for it, instead I almost forgot I invested in it but whenever I come to know I got impatient and start to think how much I can make haha.

Tools for Self-Protection
The good thing is that this space in crypto has been developed, and now there are multiple tools to help you mitigate these risks and hence come up with informed decisions.

Do You have a list of such tools? If Yes, then please mention some if you don't mind.

the early rewards now doesn't make sense when you could just ride the pumps when there is a bull market of a certain new crypto project but you don't want an early investors price these days because you can easily get this price in the bear market. and you can also test the project whether its a scam in the long run or not when it survives the long crypto winter.

right now its still best to just wait for the market to open for a new crypto project  than buying as an early offer especially if you are unsure whether it will actually be listed.

binance launch pad guarantees listing but though i guess this is where you can make money but there is still the need to chose which is which.

[Asiska02]

The Risks Involved
While the potential rewards are high, so too are the risks with being early in a crypto project. Mostly untested, it is not all that hard to bump into scams, rug pulls, or poorly designed contracts. Without proper due diligence, an early investment can quickly turn into a loss.

This particular statement has invalidate the title of your post and also makes it risky to go into projects early. One thing about cryptocurrency and that continues to make it stands out is the uncertainty of knowing what the next price of that token will be. You can as well research and could give you a direction whether it’ll go positively or not. You’ll get answers but not exact answers to where you’ll want your concern to be addressed on much. So take lower risk unless you’re convinced beyond reasonable doubts that you’ll get what you want if you invest in them early, like those that are being controlled by entities and not based on demand and supply in the market.

[|MINER|]

It is just like true that the early investors have always the best profits in hands in long-run it is also true that now in case of alt-coins there are the biggest loss amount who are the early investor. And becoming an early investor isn't that easy sometimes it's depends on luck as well as depends on the skills.
And the risks you mentioned those are the first reason because if we see the recent rug pull then most of those new project or old project create an hype in people by which people will attract to them and make investment and when the scammer get their amount they make safe exit by scamming.

[sampoerna]

To be early on a crypto project could probably bring you massive gains. Whether it is to enter at a lower price, receive exclusive perks, or ride the initial growth wave of a token, such is the privilege of early adoption. But with this opportunity comes great risk, especially in a place where scams and rug pulls have become an unfortunate reality.

That's why, early investment usually will be like this:
Higher chances to get higher gains
but, higher risks

High gains -> high risks

This has become the law, because no matter how good a new project in crypto is, we cannot guarantee that the project is 100% legit and will really succeed in entering the exchange listing and being accepted in the marketplace.

Unless the CEO or team of the project has a good track record before, and it has been proven that the previous project was really legit and good in the marketplace.

Make sure to manage your funds when you are trying to get in early investment. Be wise about spending the money. I personally would not invest a high amount for an early project, because the risk is too high.

[Dzwaafu11]

To be early on a crypto project could probably bring you massive gains. Whether it is to enter at a lower price, receive exclusive perks, or ride the initial growth wave of a token, such is the privilege of early adoption. But with this opportunity comes great risk, especially in a place where scams and rug pulls have become an unfortunate reality.

The risk is still minimal if you enter early or you know about the project immediately when it comes out. Scammers may likely not be able to harm you because you've already known everything about the project, so even if they try to scam you, the people that it will affect will be those who know about the project late, so they will be fed wrong information by these scammers.

The Risks Involved
While the potential rewards are high, so too are the risks with being early in a crypto project. Mostly untested, it is not all that hard to bump into scams, rug pulls, or poorly designed contracts. Without proper due diligence, an early investment can quickly turn into a loss.

exactly what I was thinking: entering early, maybe another big loss sometimes because the investors may not know whether it is a scam or not since at this point many people are still yet to know about the project, so it will be kind of hard to figure out the real of this project at this time. An investor can invest wisely, maybe by putting a very small amount of money into it. 

[Fivestar4everMVP]

The Risks Involved
While the potential rewards are high, so too are the risks with being early in a crypto project. Mostly untested, it is not all that hard to bump into scams, rug pulls, or poorly designed contracts. Without proper due diligence, an early investment can quickly turn into a loss.

This particular statement has invalidate the title of your post and also makes it risky to go into projects early. One thing about cryptocurrency and that continues to make it stands out is the uncertainty of knowing what the next price of that token will be. You can as well research and could give you a direction whether it’ll go positively or not. You’ll get answers but not exact answers to where you’ll want your concern to be addressed on much. So take lower risk unless you’re convinced beyond reasonable doubts that you’ll get what you want if you invest in them early, like those that are being controlled by entities and not based on demand and supply in the market.

Very correct; specially with the first few lines of your comment, from my personal experiences though, there is nothing as rewarding as finding a very good project and getting into it as early as possible, well, not early in terms of maybe buying into their ico or ieo or any other form of fund raising launched by the project, since most of the time, investors in a project's ico or ieo usually buy at a high price, and this is seen when the project's token or coin gets listed, the price immediately goes below what it was sold for during the ico or ieo.

So, getting in early that I mean here is, to buy the assets at its lowest level, which actually is very challenging because, as long as the price of a crypto asset is not zero, it's pretty hard to tell at what price is it's lowest level.
But then, those who are lucky to invest in a really good project when the price of their asset is at its lowest level, those are the ones who benefit the most, but then on the other hand, the risk is higher too, that is risk of losing money.

[Hyphen(-)]

It is just like true that the early investors have always the best profits in hands in long-run it is also true that now in case of alt-coins there are the biggest loss amount who are the early investor. And becoming an early investor isn't that easy sometimes it's depends on luck as well as depends on the skills.

To me, it is 50/50 these days because you will hardly identify a good project in the crypto space; most of the developers are used to ways people used to identify fake projects easily, and they have upgraded in a way they will look extremely real to deceive investors; therefore, investing early in new projects is risky, unlike before. Although if you do deep research, you can get it right and will definitely benefit from the project, sometimes the reverse is the case.

And the risks you mentioned those are the first reason because if we see the recent rug pull then most of those new project or old project create an hype in people by which people will attract to them and make investment and when the scammer get their amount they make safe exit by scamming.

Old projects can now be the best to invest in if you are not too greedy to cash out quickly.
Risk is involved in both new and old project, but old reputable projects can be safer.

[MUGNIA]

But with this opportunity comes great risk, especially in a place where scams and rug pulls have become an unfortunate reality.

Well, to be honest, these days most of the new projects are created with rug pulling intention and that's why I believe investing in new projects can be the cause of huge losses for the investors.

It's better to be safe and invest in only projects that are already established as good ones rather than risking your money on new projects. I know some of the well-known projects can also fail but their probability of failing is very low as compared to the new ones.

It is true that the current new project is different from the previous project, where the current project does not have any influence on the value of the coins issued. when the coin dropped the devs resigned themselves to having no power, currently most devs are projects that have small capital but want to make a profit and end up running away with the community's money